20 Jul 2017

Assets of Botswana Development Corporation (BDC) Fengyue Glass Manufacturing plant in Palapye were sold for P54 382 000 inclusive of Value Added Tax, Assistant Minister of Investment, Trade and Industry, Mr Biggie Butale informed Parliament.

Mr Butale said a credible and fair process was used by the liquidator to value the assets of the entity prior to the sale.

He said the valuation report showed that the technical equipment to be sold was either used, incomplete, considerably deteriorated or out of any possible warranty.

He said the liquidator, who was appointed by the High Court, used an online auction process which attracted about 2 713 bids to dispose the assets.

“Following a valuation of the assets as explained above, the land, plant, power station and railway spur were sold for the sum of P54 382 000 inclusive Value Added Tax.

What remained following the sale of 100 hectares of Fengyue Glass Manufacturing Industrial Estates was sold for P50 million,” Mr Butale said.

Mr Butale explained that while BDC spent half a billion Pula through investments of debt, equity and purchase of assets for the Fengyue Glass Manufacturing Plant, it was unlikely that the corporation would recover the capital invested through the sale of assets.

“The sale conducted by the liquidator was not in respect of business and equity. On the contrary, the sale was in respect of the assets of the company,” he said.

He said the board of BDC resolved to place Fengyue Glass Manufacturing Botswana (Pty) Ltd under liquidation in 2013.

Specially Elected MP, Mr Mephato Reatile had asked whether due regard was made in the decision to sell the plant for the price which it was sold for in view of approximately half a billion Pula public revenue expended on the Fengyue Glass Manufacturing Plant.

He also wanted to know how much was realised after the sale of the 100 hectares of Fengyue Glass Manufacturing Industrial Estates. BOPA